Question No 26 Chapter No 15
Dishonour of Bill
26. Sunny drew a 4 months bill on Dharam for Rs 15,000 on 1st March 2017 for goods sold. The bill was duly acceptance by Dharam and returned to Bhat. On the due date, the bill is dishonoured by Dharam
Record the entries in the books of both the parties in the following cases when Rs 200 noting charges are paid in each case.
(a)The bill was retained by Bhat till Maturity
(b)The bill was discounted from State bank for India for Rs 14,400
(c)The bill was endorsed to Hema
(d)The bill was sent to bank collection
The solution of Question No 26 Chapter No 15: –
| In the books of Sunny | |||||
| Date | Particulars |
L.F. | Debit | Credit | |
| 2018 | |||||
| Mar.1 | Bill Receivable A/c | Dr. | 15,000 | ||
| To Dharma A/c | 15,000 | ||||
| (Being bill drawn for 4 months) | |||||
| (a) | Dharma A/c | Dr. | 15,000 | ||
| To Bill Receivable A/c | 15,000 | ||||
| (Being retained bill dishonoured ) | |||||
| (b) | Bank A/c | Dr. | 14,400 | ||
| Discount A/c | Dr. | 600 | |||
| To Bill Receivable A/c | 15,000 | ||||
| (Being bill discounted from the bank) | |||||
| Dharma A/c | Dr. | 15,000 | |||
| To Bill Receivable A/c | 15,000 | ||||
| (Being discounted bill dishonoured ) | |||||
| (c) | Hema A/c | Dr. | 15,000 | ||
| To Bill Receivable A/c | 15,000 | ||||
| (Being bill endorsed) | |||||
| Dharma A/c | Dr. | 15,000 | |||
| To Bill Receivable A/c | 15,000 | ||||
| (Being endorsed bill dishonoured ) | |||||
| (d) | Bank for collection A/c | Dr. | 15,000 | ||
| To Bill Receivable A/c | 15,000 | ||||
| (Being bill discounted from the bank) | |||||
| Dharam A/c | Dr. | 15,200 | |||
| To Bill Receivable A/c | 15,000 | ||||
| To Nothing Charges A/c | 200 | ||||
| (Being discounted bill dishonoured ) | |||||
| In the books of Dharam |
|||||
| Date | Particulars |
L.F. | Debit | Credit | |
| 2018 | |||||
| Jan.1 | Sunny A/c | Dr. | 15,000 | ||
| To Bill Payable A/c | 15,000 | ||||
| (Being bill payable for 4 months.) | |||||
| (a) | Bill Payable A/c | Dr. | 15,000 | ||
| To Sunny A/c | 15,000 | ||||
| (Being retained bill dishonoured) | |||||
| (b) | Bill Payable A/c | Dr. | 15,000 | ||
| To Sunny A/c | 15,000 | ||||
| (Being discounted bill dishonoured) | |||||
| (c) | Bill Payable A/c | Dr. | 15,000 | ||
| To Sunny A/c | 15,000 | ||||
| (Being endorsed bill dishonoured) | |||||
| (d) | Bill Payable A/c | Dr. | 15,000 | ||
| Nothing Charges A/c | Dr. | 200 | |||
| To Sunny A/c | 15,000 | ||||
| (Being bill sent to the bank for collection dishonoured) | |||||
Bills Receivable Book | Subsidiary Books | Examples
Bills Payable Book | Subsidiary Books | Examples
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Also, Check out the solved question of all Chapters: –
Chapter No. 2 – Theory Base of Accounting
Chapter No. 3 – Vouchers and transactions
Chapter No. 4 – Journal
Chapter No. 5 – Ledger
Chapter No. 6 – Cash Book
Chapter No. 7 – Other Subsidiary Books
Chapter No. 8 – Journal Proper
Chapter No. 9 – Trial Balance
Chapter No. 10 – Bank Reconciliation Statement
Chapter No. 11 – Depreciation
Chapter No. 12 – Provisions and Reserves
Chapter No. 13 – Bills of Exchange
Chapter No. 14 – Rectification of Errors
Chapter No. 15 – Financial Statements – (Without Adjustments)
Chapter No. 16 – Financial Statements – (With Adjustments)